How Canadians Measure Up

Retirement IQ
Canadians understand the importance of saving for retirement and consider it a top priority but many investors lack sufficient knowledge of how to meet their financial goals. While most understand that government plans alone are inadequate to fund a lengthy retirement, the majority remain unclear about how much they need to save yearly for retirement, what investments they should consider to grow their nest eggs and how much they should target to last throughout retirement.
  • How Much Money I Will Need to Last Throughout Retirement?

    Only four in 10 Canadians who are not retired feel somewhat capable of answering this question. Younger Canadians feel less well informed than their older counterparts about the money they should be accumulating to ensure a secure retirement. Unfortunately, not knowing what your retirement savings target should be can distract from taking a long term view and contributing to retirement plans.

    I know how much money I will need…

  • How Much Should I Be Saving Each Year to Meet My Goals?

    Canadians answer this question in line with their level of knowledge about the ‘nest egg’ they will need. Only 39% of Canadians say that they feel knowledgeable about how much they should be saving each year to meet their goals. Young Canadians and those in their middle years are equally in the dark.

    I know how much I should be saving…

  • How Much Will the Government Provide me in Retiree Benefits?

    Only 42%Only 42% of Canadians who are not retired consider themselves knowledgeable about the government’s responsibility in retiree benefits. This is particularly weak for those under 55 but isn’t exactly strong among Canadians who are still working at age 65 or older.

    I know how much the government will provide me…

  • What are the Investment Choices I should Consider to Maximize my Retirement Nest Egg?

    We know that most Canadians identify themselves as ‘savers’ rather than ‘investors’ so it shouldn’t be a surprise that answering this question is particularly challenging. 36% of Canadians feel knowledgeable about retirement investment choices but only 8% feel they have some level of proficiency (‘very knowledgeable’). Older Canadians still in the workforce feel that they are somewhat more informed, however, investing is an area where little more than one in 10 Canadians feel they have strong knowledge.

    I know the investment choices I should consider…

  • What are the Tax Benefits of Saving for Retirement

    Understanding the tax implications of retirement savings have immediate benefits to Canadians. Unfortunately, still less than half (45%) of Canadians, regardless of age, describe themselves as either very or somewhat knowledgeable – and rarely the former (11%). Regardless of the question, the pattern is largely the same. Well under half of Canadians would give themselves a ‘passing grade’ on their Retirement IQ and this self-grading improves only a bit among older Canadians on the cusp of retirement.

    I know the tax benefits…

How Much is Enough?

Although many Canadians are wisely contributing to registered retirement savings plans (RRSPs) and tax free saving accounts (TFSAs), four in 10 are not saving for retirement at all regardless of age – jumping to 48% among those aged 25 to 34 years old. And among those saving, accumulated savings falls far short of what they need to live on with a retirement time horizon they expect to last 25 years.

Today vs. Tomorrow

Canadians widely believe the pressure of meeting daily expenses is preventing them from saving more for retirement. Many will need to find other means of support or may have to vastly reduce their retirement lifestyle.

Taking Control

It’s essential that investors understand the income they will need to live a comfortable retirement and whether their current savings and ongoing contributions will get them there.

Close the Gap

See how “to close the gap” between your current investments and what they’ll earn in retirement. Online retirement income calculators may be a good place to start.

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Portfolio Checkup

Make sure your current mix of savings and investments – including how much cash you hold – will help you reach your goals.

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Ask for Help

Talk to a financial advisor about the best ways to manage the cost of living today and still save enough for the future.

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* Canadians with $150,000 or more in wealth and investments.